Regional Economic
Development 101
Module
Two
Session Overview
• Defining economic
development
• Exploring major trends
• Examining your economic
development activities
• Defining a region: Different
approaches
• Determining key features
of successful regions
DEFINING
ECONOMIC
DEVELOPMENT:
GETTING ON THE
SAME PATH
Group Discussion
• How do you define economic
development?
• What do you view as an economic
development success?
IT’S A CHANGING
WORLD:
MAJOR TRENDS
Mega-Trends: Global Economy
 Economic downturn;

declining public funding
 Loss of manufacturing jobs
& growth of service

industries
 Polarization of work

reflecting knowledge, skills
& abilities
 Outsourcing that divides
“value-chain” functions into
more productive,

interdependent activities
Increasing importance of
creative & knowledge
economies
Specialization of regions &
communities
Connections among
places with
complementary
specializations or
resources
Growth of entrepreneurs &
the self-employed
Adapted from Know Your Region
Mega-Trends: Economic Development
 Emphasis on job creation
 Continued focus on companies rather than
industries or people
 Loss of private sector leadership
 Need for talented workforce
 Greater public scrutiny of investments
 Need for economic developers with new skills
in marketing and networking
GROUP ACTIVITY:
REGIONAL TRENDS
With a Partner…
• Select a trend you believe impacts
this region.
• Discuss the trend’s impact and
importance.
• Be ready to share with the entire SET
team.
EXAMINING YOUR ECONOMIC
DEVELOPMENT ACTIVITIES
ARE THEY IN SYNCH WITH THE
MEGA-TRENDS?
Three Waves of Economic Development
Component
First Wave
Second Wave
Third Wave
Goal
Industrial Recruiting:
Attract outside
businesses
Cost Competition:
Retain and expand
existing businesses
Regional Competitiveness:
Enhance regional resources to
promote regional collaboration
and clusters
Strategies
Provision of financial
incentives
• Reduction of taxes
• Deregulation
• Industry consolidation
and cost cutting (i.e.,
lean manufacturing)
• Entrepreneurship
• Regional collaboration
• Identification and development
of regional clusters and import
substitution activities
• Develop training
programs
• Strengthen the health of
existing firms
• Provide social and
physical resources
• Build on unique regional assets
(such as human capital,
amenities, creative economy,
innovation)
• Focus on leadership
development
• Develop/maintain quality
environment
• Bridge economic and
community development
Building of industrial
parks
Keys to
Success
Offer government
funds for subsidies
and tax breaks
Develop an industrial
infrastructure
Source: Blakely & Bradshaw (2002); Drabenstott (2006); Hembd (2008)
OLD Economic Development
Successful places…
• Touted a cheap place to do business
• Focused on attracting companies
• Fostered a cost-conscious physical
environment
• Had a competitive advantage in
some resource or skill
• Had government-led economic
development
NEW Economic Development
Successful places…
• Are rich in ideas and talent
• Attract educated people
• Provide physical and cultural amenities
• Have organizations and individuals with
the ability to learn and adapt
• Embrace bold partnerships among
business, government and nonprofit
sectors
Economic Development:
Which Strategies are You Pursuing?
• Industrial recruitment &
attraction
• Business retention & expansion
• Small business development
• Entrepreneurship/business
incubators
• Micro-enterprise development
• Downtown revitalization
• Workforce development &
training
• Economic gardening
• Economic/occupational clusters
• Information technology
infrastructure
• Building on local assets
(tourism, recreation, physical
and/or cultural amenities)
• Attracting creative & educated
people
• Value-added agricultural
enterprises
• Others?
Your Current Economic
Development Strategies
Current Strategies (List below)
Which “Wave” ( 1st, 2nd or 3rd)?
DEFINING A
REGION:
DIFFERENT
APPROACHES
What is a Region?
• Geographical area of similar
characteristics:
 Similar within
 Different from other places
• Place with a unique identity and meaning
Types of Regions
•
•
•
•
•
•
Functional
Economic
Political
Administrative
Data
“Issue”
Each of these regions is valid.
Which one you use simply depends
on what you are attempting to do.
Determining Your Region: A Caution
• A local area may be part of
multiple relevant economic
development regions.
• A single definitive region seldom
exists for any locality.
The appropriate region will depend on
current strategies and concerns.
Defining Your Region
Start With What Makes Sense
• Identify counties with common elements
• Look beyond traditional boundaries
 State lines
 County lines
 Rural/Metro lines
• Find areas that share interests and goals
Why This Region?
• Why was this mix of counties selected?
• What makes this a region?
• What do you have in common? What are
the challenges?
• What is your collective history & structure?
• What might be the focus for this region?
KEY FEATURES
OF SUCCESSFUL
REGIONS
Why a Regional Approach?
Promotes the Three Cs:
 Conversation
 Connection
 Capacity
Source: Council on Competitiveness (2010)
A New Game Plan:
How to Pursue Regional Economic Development
Three major components:
• Build regional critical mass
• Prioritize investments in public
goods and services
• Spur innovation
Based on 20 case studies around the world. Reported in Drabenstott (2010)
Seven Policy Principles
1. Seize regional competitive advantage
2. Invest in transportation and telecommunications infrastructure
3. Adopt technologies that strengthen competitive advantage
4. Strengthen rural labor markets and boost worker skills
5. Foster better collaboration across jurisdictional lines in rural regions
6. Restructure agriculture by increasing value-added business activities
7. Improve the delivery of public services in rural areas
Based on 20 case studies around the world. Reported in Drabenstott (2010)
Successful Regions Have…
•
Leaders that recognize new realities
of economic development
•
Commitment to collaboration
•
Global view
•
Understanding of current strengths
and weaknesses
•
Flexibility and adaptability
Successful Regions Have….
•
Capacity to respond; Structure to
support activities
•
Comprehensive view of development
•
Mechanism for continuously searching
for opportunities
•
Way to evaluate impact
Our Region: Taking Stock
Needs
Lots of
Work
Mixed
Reviews
In Pretty
Good
Shape
Final Reflections
• Key takeaways from this module?
• Most helpful information? Least helpful?
• Action items on this topic before the next
SET meeting?
• Additional participants needed for next SET
session? Who will contact?
• Other items?
Looking Ahead . . .
3
• Building a Strong Regional Team
4
• Developing Your Vision and Goals
5
• Focusing on Current Demographic Features
6
• Exploring Opportunities for a Stronger Regional Economy
7
• Examining Assets and Barriers
8
• Planning for Success
9
• Measuring for Success